Dr.

Vishwanath Karad MIT World Peace University

MBA PROGRAMME
CASE STUDY

Business Analysis: Case No. 1

Bowery Farming

Bowery Farming is growing crops in warehouses to create food like

customized kale
Lora Kolodny | Magdalena Petrova

Published 7:30 AM ET Thu, 24 May 2018

• Bowery Farming is using robotics and software to raise crops in

warehouses outside of big cities.
• Jose Andres, Carla Hall and David Barber are among the star chefs who have
invested in Bowery's indoor farming venture.
• The U.N. projects that by 2050, food production will need to increase by about 60
percent to feed the growing global population.

A start-up called Bowery Farming is putting an urban twist on agriculture, raising

leafy greens and herbs in a high-tech warehouse a few miles outside of New York
City, and celebrity chefs are starting to invest.
Using a mix of software, cameras, lights and robotics, Bowery can control
precisely how plants grow. CEO and co-founder Irving Fain says chefs love the
company's systems because they allow Bowery to make customized ingredients for
them, giving kale a softer leaf or arugula a more peppery taste, for example.
According to Fain, 1 square foot within one of these indoor farms is 100 times
more productive than 1 square foot of arable land.
CNBC took a look inside of the company's first farm in New Jersey with investor
and celebrity chef Carla Hall, who is the Emmy-winning co-host of "The Chew"
on ABC. "I visited the farm and tasted the food," she said. "It moved from a
concept and an idea that is sustainable to deliciousness."
Today, the company grows and sells its own brand of baby kale, butterhead lettuce,
arugula, mixed kales and basil. Some are available in and around New York
including at Whole Foods markets, and restaurants Craft and Temple. Both are run
by Tom Colicchio, also an investor.

SOURCE: Magdalena Petrova CNBC

Fain thinks of Bowery's food as "post-organic."

"We grow with no pesticides, herbicides or insecticides, no agrochemicals at all,"
he said. "And we're able to grow 365 days a year, independent of weather."

SOURCE: Magdalena Petrova CNBC

Bowery isn't alone in its mission to feed the world without using as much water,
energy or chemicals, to raise crops. Other indoor farming innovators like Plenty,
AeroFarms and Freight Farms have also attracted venture capital.

MBA602A Business Analysis Ajay Nagre 2

Especially because the planet has lost a third of its arable land in the past 40 years,
Fain said he welcomes all players in sustainable agriculture. The U.N.'s Food and
Agriculture Organization projects that by 2050, food production will need to
increase by about 60 percent to feed the growing global population.

SOURCE: Magdalena Petrova CNBC

Bowery has raised $27.5 million in venture funding to build its indoor farms across
the U.S. and to sell produce grown there to select restaurants and groceries.
Investors in Bowery include Alphabet's venture arm GV, General Catalyst, GGV
and First Round Capital. But the company more recently attracted funding from a
long list of culinary icons including Hall, Colicchio and Jose Andres.
Questions:

1. Explain the factors that are driving changes in the ecosystem that support Bowery’s business
model.
2. What stakeholder needs are being addressed by the company? Apply CATWOE Analysis.
3. Explain how Bowery Farming is using IR 4.0 technologies to create value for the customers
4. Elaborate how technology is used for producing eco-friendly products
5. Explain how the company uses technology to create a sustainable business model.

References:
https://boweryfarming.com/
https://www.cnbc.com/2018/05/24/bowery-farming-growing-crops-in-warehouses.html
https://www.youtube.com/watch?reload=9&v=77mE_IvH0TE

MBA602A Business Analysis Ajay Nagre 3